Will Eureka City Council vote for custom regulations on adult use of medical cannabis or ban all adult use or defer to state?

Staff recommendation to Eureka City Council members on a proposed amendment regarding medical cannabis as well as non- medical cannabis use is on the Agenda for the October 3 meeting.

Four pages from a document on the City of Eureka website.

"RECOMMENDATION
1. Receive report; and
2. Hold a public hearing; and
3. Waive reading, read by title only, and introduce Bill No. 941-C.S., approving the Text and Local Coastal Program Amendments modifying Eureka Municipal Code Title 15 Chapter 155 pertaining to cannabis; and
4. Waive reading, read by title only, and introduceBill No. 942-C.S., approving the Text and Local Coastal Program Amendments modifying Eureka Municipal Code Title 10, Chapter 5 pertaining to cannabis; and
5. Direct Staff to submit the Local Coastal Program Amendments to the California Coastal Commission.
FISCAL IMPACT
⊠No Fiscal Impact ☐Included in Budget ☐Additional Appropriation
COUNCIL GOALS/STRATEGIC VISION
Update Municipal Code
DISCUSSION
The City is proposing to amend Chapter 158 of the Eureka Municipal Code, which currently regulates Medical Cannabis in Eureka. The proposed amendment is drafted based on direction from City Council on June 6, 2017, the Medical and Adult Use Cannabis Regulation and Safety Act (MAUCRSA), and the Adult Use Marijuana Act (AUMA). The proposed amendment addresses both medical cannabis as well as non- medical adult use cannabis. Since the proposed amendments are included in the Implementation Plan of the Local Coastal Program, in addition to an amendment to the text of the Municipal Code, an amendment to the LCP is also required.

AGENDA DATE: October 3, 2017 ITEM NO. A.3
Timeline of Key Events to Date:
1. Fall, 2015: State passes new Medical Cannabis Regulations. The state legislature passed and the Governor signed into law three bills (AB 266, AB 243, and SB 643), which together comprised the Medical Marijuana Regulation and Safety Act (MMRSA) and was later changed to the Medical Cannabis Regulation and Safety Act (MCRSA). MCRSA created a comprehensive state licensing system for the commercial cultivation, manufacture, dispensing, transport, distribution, delivery and testing of medical cannabis.
2. City adopts new Medical Cannabis Regulations: In September of 2016, the City Council adopted an Ordinance modifying Chapter 158 of the Eureka Municipal Code. The Ordinance updated the City’s regulations of medical cannabis by incorporating provisions to match MCRSA.
3. Non-medical Adult Use Marijuana Ballot Initiative Passes: In November of 2016, California’s voters approved Proposition 64, titled the Adult Use of Marijuana Act (AUMA). AUMA is an extensive initiative, which regulates and legalizes the adult recreational use of marijuana (non-medical).
4. City Council Provides Updated Direction to City Staff: On June 6, 2017, staff presented the general provisions of AUMA to City Council and received specific feedback regarding Council’s vision for the regulation of non-medical marijuana in the City as well as some envisioned alterations to the City’s current regulations of medical cannabis.
5. State Updates Cannabis Regulations: On June 27, 2017, Governor Brown signed into law SB94: The Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA). The bill repeals the Medical Cannabis Regulation and Safety Act (MCRSA) and incorporates some provisions of MCRSA and the Adult Use of Marijuana Act (AUMA aka Proposition 64).
6. Planning Commission Direction: On September 11, 2017, staff presented the proposed text amendments to the Planning Commission. The Planning Commission discussed disallowing onsite consumption with the Cannabis Temporary Event license, eliminating the 2,500 square foot maximum forthe Microbusiness license type andlimiting the number of recreational facilities. Due to a lack of quorum, the amendments did not pass and a Special Planning Commission meeting is being held September 27th. Staff will update City Council to the Planning Commission’s recommendation during the presentation on October 3, 2017.
Background and Need for Action:
Per MAUCRSA, the City of Eureka has until January 2018 to develop customized regulations regarding Adult Use Cannabis. If the City fails to act by January of 2018, the State’s default regulations will automatically apply in Eureka. Accordingly, the City has three primary options:
1.Do nothing and allow the State’s default regulations to apply in Eureka (not
recommended)
2.Completely ban all forms of Adult Use in Eureka
3. Develop custom regulations regarding Adult Use Cannabis (recommended)
AGENDA DATE: October 3, 2017 ITEM NO. A.3

Because of the deadline established by Proposition 64 (AUMA) and MAUCRSA, the City must immediately initiate the process to modify Chapter 158 in order to have regulations in place prior to January of 2018. Fortunately, the recent passage of SB94 makes the task significantly more straightforward.
It is important to note that the State legislature has changed the regulations regarding cannabis an average of every three months since the initial passage of MCRSA. While the passage of SB94 should bring some stability to the ever-changing State regulations, staff assumes that more changes are ahead at the State level. Accordingly, staff’s underlying strategy in drafting modifications to our local code is to develop custom regulations that suit Eureka’s needs/interests and to require in our Municipal Code that cannabis-related business must also “comply with State law.” This avoids the need to ensure that every detail of our local ordinance precisely matches the details of the State laws.
The following outlines the details of Proposition 64 (AUMA) and SB94 (MAUCRSA), both of which require the City take action and update our local codes:
Proposition 64 (AUMA) includes the following regulations that have influenced the drafting of Eureka’s revised Ordinance:  Marijuana users
The recreational use of marijuana for adults aged 21 years or older is legal in private homes or at businesses licensed for on-site marijuana consumption. Use of marijuana is illegal while driving a vehicle, anywhere smoking tobacco is prohibited, and in all public places. Up to 28.5 grams of marijuana plant matter and eight grams of concentrated marijuana are legal to possess. However, possession on the grounds of a school, day care center, or youth center while children are present remains illegal. The City has little to no influence over these provisions.

 Personal Use Cultivation
Adults aged 21 and over may cultivate up to six plants and possess the marijuana from these plants at their residence for personal use. The City may not ban this State provision. The plants may be grown inside a residence, within an accessory structure that is “fully enclosed and secure,” or outdoors (though outdoor cultivation is unlikely to be viable in Eureka’s climate). All plants and harvested marijuana in excess of oneounce must be (1) kept within the person's private residence or on its grounds, (2) in a locked space, and (3) not visible from a public place. The City may impose “reasonable regulations” on personal use cultivation, and may ban outdoor cultivation, but cannot completely prohibit cultivation at a residence.  Marijuana sellers Businesses are required to obtain a state license to sell marijuana for recreational use. The City of Eureka may also require businesses to obtain a local license. Per State law, businesses are not authorized to sell within 600 feet of a school, day care center, or youth center. Prop 64 also prevents licenses for -scale marijuana businesses for five years in order to prevent "unlawful monopoly power." The City may establish more restrictive regulations.  License Types
Counties and municipalities are empowered to restrict where marijuana businesses can be located. Local governments are also allowed to completely ban the sale of marijuana from their jurisdictions. The Statelaw allows the City to build upon the City’s current medical cannabis regulations and business types (cultivation, manufacturing, distribution/transport, testing, dispensing/retail). The City may also establish “standards, requirements, and regulations regarding health and safety, environmental protection, testing, security, food safety, and worker protections that exceed state standards.” If the City fails to regulate adult use cannabis by January 1, 2018, then the State laws will apply in the City without any City oversight or influence.
SB94(MAUCRSA) includes the following regulations that have influenced the drafting of Eureka’s revised Ordinance1:
 The types of licenses available for commercial adult-use cannabis activity and commercial medicinal cannabis activity will be the same and generally fall into these categories:
o Cultivation
o Distribution/Transportation
o Manufacturing
o Testing and Research & Development
o Dispensaries/Retail
 There will be new requirements associated with quality assurance, inspection,
and testing of cannabis and cannabis products prior to retail sale.
 Until January 1, 2026, there are limits on the combinations of cannabis license
types that a person may hold.
 After January 1, 2026, there are no limits on the combinations of cannabis license types that a person may hold (except for testing licenses, which will remain a “single” license).

Environmental: Amending the text of the Eureka Municipal Code is a “project” for the purposes of the California Environmental Quality Act (CEQA). However, pursuant to the CEQA Guidelines section 15061, there is a general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the uses that are being added as principally permitted uses are similar to uses that currently exist within the zone (e.g., manufacturing, offices, laboratories) and the uses that are being added as conditionally permitted uses will receive CEQA review during the use or minor use permit process; "